A UCC Lien on ‘Accounts’ Won’t Attach to a Postpetition Sale of Real Property
Although a UCC lien on ‘accounts’ would attach outside of bankruptcy to proceeds from the sale of real property, Section 552(b) cuts off attachment if the sale occurs after filing
Another Court Holds that a Debtor Has a Property Interest in Contracts, Not Customers
Once the debtor loses the right to do business, taking customers for no consideration isn’t a fraudulent transfer, Judge Isgur holds.
A Judgment for Punitive Damages Might Not Support Nondischargeability Automatically
Jury instructions and a special verdict form can determine whether issue preclusion automatically results in nondischargeability.
The Right to Credit Bid Does Not Preclude Charging a Buyer’s Premium at Auction
When a secured lender credit bids, a buyer’s premium can be a legitimate surcharge against the lender’s collateral, Judge Rodriguez says.
On an ‘Involuntary,’ Denial of Summary Judgment Doesn’t Mean the Claim Is Disputed
The Iqbal and Twombly standards don’t apply to involuntary petitioners who are required to use Official Form 105.
Liquidating a Defunct Corporation Qualifies for the SBRA, Judge Lopez Says
Increasingly, courts are allowing defunct corporations to proceed under the SBRA while individual owners of defunct businesses aren’t being treated as small business debtors in chapter 11.
Once Repudiated, a Contract Is No Longer Executory
Courts disagree on whether a repudiated contract remains executory.
Judge Isgur Knocks Down a Special Counsel’s Fees for ‘Unprofessional’ Conduct
Incivility may be acceptable in matrimonial matters, but not when the lawyer represents a debtor.
Medicaid Fraud Suit in State Court Isn’t Subject to the Automatic Stay
Even though the debtor was no longer in business, a Medicaid fraud suit was not subject to the automatic stay and thus served as a deterrent to others.
Court Records Destroyed, a Finding of Proper Notice Presumes Notice by Publication
The finding of proper notice in a confirmation order satisfies the debtor’s burden of proving notice by publication to creditors with future claims, even in the absence of a trust for future creditors, Houston judge says.